• Sign up for the Daily Digest E-mail
  • Facebook
  • X
  • LinkedIn

BOE Report

Sign up
  • Home
  • StackDX Intel
  • Headlines
    • Latest Headlines
    • Featured Companies
    • Columns
    • Discussions
  • Well Activity
    • Well Licences
    • Well Activity Map
  • Property Listings
  • Land Sales
  • M&A Activity
    • M&A Database
    • AER Transfers
  • Markets
  • Rig Counts/Data
    • CAOEC Rig Count
    • Baker Hughes Rig Count
    • USA Rig Count
    • Data
      • Canada Oil Market Data
      • Canada NG Market Data
      • USA Market Data
      • Data Downloads
  • Jobs

Oil dips, still set for biggest January rise in five years

January 29, 20182:01 PM Reuters0 Comments

HOUSTON (Reuters) – Oil prices slipped 1.5 percent on Monday, pressured by a strengthening dollar and rising U.S. crude output, but prices remained on track for the biggest January increase in five years.

Brent crude futures were down $1.05 at $69.45 a barrel at 11:26 EST (1626 GMT). U.S. West Texas Intermediate (WTI) crude futures were $1 lower at $65.14 a barrel.

Brent has risen 6.3 percent so far this month, headed for its biggest January rise since 2013.

“There seems to be a little profit-taking today because the stock market is weaker and longs keep adding to the long side of the equation,” said Phil Flynn, analyst at Price Futures Group in Chicago.

Oil prices have been buoyed by the U.S. dollar’s six straight weekly slides. The greenback is set to fall 3 percent for this month. .DXY Oil is priced in the U.S. currency, so a falling dollar can boost demand for crude from buyers using other currencies.

The dollar index had been below $90 since Jan. 24. But the currency has rebounded nearly 0.5 percent since Friday to $89.59, which has weighed on crude prices.

“After six weeks of losses balance is inevitable. Its influence has really resurged as of late to where the dollar index below $90 has propped up oil,” said John Kilduff, partner at Again Capital LLC in New York.

Crude prices also had drawn support from a large premium in the front-month Brent oil contract over those for future delivery, as investment in crude futures and options reached a new record high last week.

Oil consumption is surging as a result of growth in major economies, while OPEC and its allies have made repeated commitments to limiting their crude output.

On Monday, Iraq’s oil minister said in London that the oil market was improving, and that the country would comply with OPEC output cuts even though it is trying to increase its oil export capacity.

Somewhat offsetting the OPEC-led cuts has been rising oil output in North America.

“We believe that today’s oil prices project a too rosy picture,” said Julius Baer’s head of macro and commodity research Norbert Ruecker.

U.S. output has jumped more than 17 percent since mid-2016, reaching 9.88 million barrels per day (bpd) in mid-January. It is expected to exceed 10 million bpd soon.

U.S. energy firms added 12 drilling rigs for new production in the week to Jan. 26, taking the total to 759, Baker Hughes reported on Friday.

U.S. production is now on par with top exporter and OPEC kingpin Saudi Arabia. Only Russia produces more, averaging 10.98 million bpd in 2017.

Follow BOE Report
  • Facebook
  • X
  • LinkedIn

Sign up for the BOE Report Daily Digest E-mail

Successfully subscribed

Latest Headlines
  • Discount on Western Canada Select widens
  • European Commission proposes Russian oil price cap 15% below global price
  • US oil/gas rig count down for 11th week to lowest since 2021, Baker Hughes says
  • Taiwan’s CPC Corp eyes US shale gas assets, sources say
  • Saudi Arabia complying fully with voluntary OPEC+ target, energy ministry says

Return to Home
Alberta GasMonthly Avg.
CAD/GJ
Market Data by TradingView

    Report Error







    Note: The page you are currently on will be sent with your report. If this report is about a different page, please specify.

    About
    • About BOEReport.com
    • In the News
    • Terms of Use
    • Privacy Policy
    • Editorial Policy
    Resources
    • Widgets
    • Notifications
    • Daily Digest E-mail
    Get In Touch
    • Advertise
    • Post a Job
    • Contact
    • Report Error
    BOE Network
    © 2025 Stack Technologies Ltd.